Multi-billion dollar land plots in Hanoi remain empty
12-03-2015 16:44:35+07:00
Multi-billion dollar land plots in Hanoi remain empty
Investors once paid thousands of dollars for each square meter of land in so-called golden land areas in Hanoi, but the plots remain empty and unused.
However, no information about the project or the project developer has appeared in media and the developer “disappeared from sight” after the construction of the ninth floor was finished.
The Thien Nien Ky (millennium) Tower project in Ha Dong, a new district of Hanoi, which was expected to be luxurious with high-end services, was approved nearly 10 years ago, but has not been built.
TSQ Vietnam, the project’s investor, on its official website, said the $50 million tower would be “splendid” with original designs. It would be a complex of retail shops, restaurants, offices, nursery schools, silk display center and an apartment block with 700 apartments and 10 penthouses.
But the area in Yet Kieu Ward remains deserted with metal sheets, garbage and weeds.
Me Tri is an area where an investor planned to build a 102-storey building, which would be the tallest in Vietnam and the second tallest in Asia.
However, the plan failed. The number of stories has been cut from 102 to 79, while the project has changed hands many times for different reasons, and the initial planned capital of over $1 billion has been reduced to $600 million.
An analyst noted that in most cases the projects cannot be implemented because of investors’ financial problems.
“Investors try to draw up splendid projects with hefty capital because they think they can easily call for capital in a hot market,” he explained.
“However, the frozen real estate market, plus economic recession, have made it impossible to call for such huge capital,” he said. “Therefore, they have to give up the projects, or wait an indefinite time.”
The investor of Gamuda in Hoang Mai district in Hanoi has decided not to develop the B block of the apartment project because of higher-than-expected costs.
The investor said due to amendments in laws, the expenses for site clearance have increased to $150 million from the $20 million initially planned.
